The registrar is a specially authorized person who maintains the register of owners of securities. The depositary directly stores certificates of securities, provides services related to the registration of rights to these securities.
The main differences between the registrar and the depositary can be established by studying the Federal Law "On the Securities Market". At first glance, these entities are engaged in similar activities related to the provision of professional services to the owners of shares and other securities. But upon closer examination, it becomes clear that the nature of the services provided by these persons is different, so we should talk about their fundamental functional difference. The only similar point is the fact that both entities are engaged in professional activities, interact directly with shareholders and other holders of securities.
Depository activities in the securities market
The named law defines a depository as a subject that implements depository activities. In this case, the depositary activity itself means the provision of services related to ensuring the storage of securities certificates. Consequently, this market participant keeps documents that are direct confirmation of the rights of shareholders and other owners of securities to the respective assets. In addition, the depository carries out activities related to the accounting of the powers for the specified securities, the transfer of the corresponding rights in the course of certain transactions. Thus, these persons carry out a fairly wide range of activities, directly interact with securities, their owners.
Registrar's activities in the securities market
The concept of the functional purpose and role of the registrar in the securities market is also indicated in the aforementioned law. In accordance with its provisions, the registrar, which is also sometimes called the registrar, carries out exclusively activities related to the maintenance of the register of securities holders. Consequently, unlike a depository that directly interacts with securities, providing their storage, accounting, transfer, the registry holder implements purely technical functions that require the presence of professional skills in compiling the register, making changes to it. The activities of these market participants are different in nature, which entails a corresponding difference in functional purpose, which is reflected at the level of federal legislation.
